Category: Pension

The Pension Transitional ArrangementDirectorate (PTAD) has completed the payment of arrears arising from the consequential adjustment to pensions to three out of the four operational departments in the Directorate.

Following the Presidential nod for a consequential adjustment to pension of the retirees under the Defined Benefit Scheme as a result of the increase in minimum wage in 2019, PTAD started payment of the pension increment in May 2021, with an accrued arrears of 24 months.

The Civil Service pensioners were paid nine months out of the 24 months’ arrears while the parastatals, Police, and Customs, Immigration and Prisons Pensioners got 12 in May.

In July 2021, PTAD paid an additional nine months of the consequential adjustment arrears occasioned by the minimum wage increase of 2019 to Civil Service Pension Department Pensioners and six months of the same arrears to Parastatals, Police, Customs, Immigration and Prisons Department Pensioners, thus bringing the arrears paid so far to a total of 18 out of the 24 months’ arrears of the Pension Increment.

The Executive Secretary of PTAD, Dr. Chioma Ejikeme in a statement stated: “In line with the promise earlier made, more of the accrued arrears have been paid, leading to a complete payment in three operational departments, with a promise to pay the remaining arrears before the end of first Quarter of 2022.

The cleared departments are parastatals; Customs Immigration and Prisons; and Police; while a balance of three months’ arrears is still  owed the retirees under the Civil Service Pension Department.

Thanking the pensioners for their understanding, she promised to continue promoting the welfare of the senior citizens in accordance with the mandate of the Directorate.

 

MAXWELL: Dear DG PTAD, I just want to inform you that I have not seen my Federal Share Pension for August 2021.

Others in my state Plateau have received theirs since September 3, 2021 but I haven’t seen mine. I want to thank you for the good work you are doing in PTAD.

PTAD: Kindly inform the pensioner that his complaint is being processed and he can reach out to us on our phone number 094621700 or via email (complaints@ptad.gov.ng) for more information.

OBI: I am Obi. I resigned from the Federal Housing Authority in 2005 after 14 years.

In February 2021, I submitted photocopies of my documents as a prerequisite for verification at PTAD headquarters Abuja, but I am yet to be invited. I really don’t know what to do next, as I am yet to be put on pension payroll.

PTAD: Pensioner to provide his contact phone number to enable us contact him and schedule him for verification. He can also contact PTAD on 09-4621700 to request for a verification.

CHIDI: My name is Chidi. My mother, Mrs. Augustina, has not been paid any dime as pension for over 15 years. Although it is a long story which is partly not the fault of PTAD.

But PTAD has taken over the payment of pensioners, including my mother as well as her group in Nigerian Railway Corporation (NRC), Enugu District to be precise.

I want to know when the pensioners, including Mrs. Augustina, in NRC, Enugu District who were part of the mass retrenchment in 2005 by former president Obasanjo administration, would start receiving their monthly pension like others?

Many of her colleagues either are dead or incapacitated due to hunger, hardship, trauma, and sickness.

That Mrs Augustina is still alive is by the grace of God. This is despite that my mother’s side won  the legal tussle between her group and NRC, Enugu District, with excruciating pains and lack of financial support. Please my mother wants to know the cause of the delay.

PTAD: If the pensioner has been verified by PTAD, advise her to scan and send her pensioner verification acknowledgement slip to complaints@ptad.gov.ng. Pensioner to also provide her contact phone number to enable us contact her and advise her further regarding her pension.

MOSES: My name is Ogundele. I will like to inform you that  my minimum wage for 24 months is not correct. I was paid N64,304,44. The monthly increase is N6,192,19. Some of my colleagues, who are on the same grade as I, were also short paid.

Kindly effect the correction.

PTAD: Advise pensioner to scan and send his verification slip and complaint to complaints@ptad.gov.ng

DANLAMI: Thanks, and kudos to your newspaper for your responses to the plight of pensioners. It is sad that since the Nigeria Telecommunication (NITEL) verification of January 2018, the former staff members and I were yet to benefit from the pension payments.

Please continue to help me. God bless you abundantly.

PTAD: Pensioner’s complaint sent to the operation department for their review and further action. Please advise pensioner to provide his contact phone number

ISHOLA: My name is Ishola. I am a Federal Government pensioner (pure federal). I received my pension till last December . Later I received a message that I was over paid and that they deducted the over payment, which supposed to be completed in April, this year with some balance to claim, but nothing came into my account.

Help me look into my matter.

PTAD: Inform pensioner that his over-payment recovery has been completed. He was put back on the payroll in May 2021. He is advised to confirm the payment from his bank

ABRAHAM: My name is Abraham, son and next of kin (NOK) to the late Inspector Samuel Adem, from Benue State. My late father retired from the Nigeria Police on June 29, 2004 after 26 years.

Until his death, his monthly pension was yet to start. This means he was not on police pension payroll till he died on October 6, 2010. Please, where and how do we process his pension and death benefits. Is it at PTAD or PENCOM?

PTAD: Advise NOK to scan his late father’s service documents and phone number to verification@ptad.gov.ng. He should also state deceased’s date of retirement from service.

ABUCHI: My name is Abuchi. I worked at the Federal Ministry of Housing and Urban Development. I was disengaged from service on July 13, 2006. Our gratuity was paid on June 19, 2007. I started receiving my pension from August 2008.

My complaint is that I have not been paid my pension arrears from the day of retirement, which is from July 31, 2006, to July 31, 2008, after several submissions of complaint letter and bank statements.

Since 2008, when we did our last verification to date, nothing has come out of it.

PTAD: Advise the pensioner to provide his original stamped and signed bank statement from retirement till date

OKE:  My name is Oke. I have a problem with my gratuity with Federal Pension Directorate. A colleague gave your number to me as somebody who can help.

PTAD: Pensioner should please send his verification acknowledgment slip to complaint@ptad.gov.ng for further investigation.

Stanbic IBTC Pension Managers, a subsidiary of Stanbic IBTC Holdings, is promoting the advancement of arts on the continent.

It sponsored one of the Art X talk sessions themed “Beyond collecting: Building an ecosystem”.

The event featured a panel that included the founder, Kobomoje Artist- in-Residence, Hakeem Adedeji; founder, Art House Contemporary Auction House and Kó Gallery, Kavita Chellaram; founder/Chief Executive Officer, Prince Yemisi Shyllon; Shyllon Art Foundation, Marwan Zakhem, founder, Gallery 1957, Omooba Yemisi Adedoyin; and Tokini Peterside, founder, Art X Lagos.

“We are entirely committed to driving Africa’s advancement as it is our home, and we are excited to always be a part of the artistic and creative strength of Africans.

“We are pleased to be the presenting the sponsor of this panel conversation, as it aligns with our philosophy at Stanbic IBTC Pensions Managers that dreams can be achieved. The insights provided have been invaluable for all existing and emerging collectors passionate about African art and its ecosystem, ’’ Layo Ilori-Olaogun,  Stanbic IBTC Pension Managers’ Head of Client Experience, said.

Ilori-Olaogun said the event was beneficial for clients who are passionate about collecting art and building Africa’s appreciation for traditional and contemporary artworks, as well as artists who are telling African stories, preserving our culture and in their ways, contributing to the growth of our economy.

He said the PFA invited students from various schools on a tour of the Art X  Lagos Fair, noting that the experience exposed the pupils to an international selection of artworks, sculptures, and photo galleries, thus expanding their minds and painting a picture of possibility that the young ones can carry on to adulthood.

The fair showcased paintings and art murals, among other art pieces, and continues to be a voice for African Art and artists.

President Muhammadu Buhari is owing retirees under the Contributory Pension Scheme (CPS) N100 billion accrued pension rights, The Nation has learnt.

Investigation by the newspaper revealed that out of the huge amount owed, only N8 billion has been released so far, this year.

Also, workers of the Federal Government who retired from January 2021, are yet to get their retirement benefits.

This development is causing a major setback for the Scheme. The disgruntled retirees are lamenting that the President has failed to pay them for 11 months, after serving their fatherland meritoriously.

They are calling the National Pension Commission (PenCom) to pay them immediately and stop their sufferings.

Confirming the development, the Nigeria Union of Pensioners (NUP) said there had been backlog of debt on CPS to retirees that quit since January.

Its Media and Publicity Secretary, Bunmi Ogunkolade, said the accumulation of the four years’ debts started during former President Goodluck Jonathan administration.

He said Buhari initially released money to clear two years and later one year, leaving one year arrears.

“We need the President to release good money to clear the backlogs.

“Before former President Jonathan left, he was not paying accrued right under contributory pension for about four years and so if you retired now you cannot get your pension.

“We need President Buhari to prioritise pension and release enough money to clear the backlog. If government does not release good money, it cannot cover the debt on ground. The last payment to retirees was made in December 2020. This is not good enough. We are aware that PenCom has submitted accrued bill this year but money has not been released,” he added.

FARID: Hello, my name is Farid. The president’s approval of the outstanding pension said something about 2014 but my father died in 2013. Will his death benefit also be paid? And what is consolation and how long does it take? Thank you.

PENCOM: Please be advised that your late dad is not eligible for the outstanding pension arrears as this took effect from July 2014.

ABDULLAHI: Good day. My name is Abdullahi, the son of the late inspector Etubi. You earlier informed me that everything had been settled. We were asked to provide our father’s name and RSA PIN to enable the commission to investigate further whixh we have provided.

We were told in The Nation publication that we are among the next batch to be paid. But we are yet to be paid. Kindly help.

PENCOM: Investigation have shown that there is no submission of such details in our database. Kindly visit your PFA to ensure that your documents were further submitted to the commission.

UKEJE: My name is Ukeje. I retired from the Nigeria Custom Service (NCS) in 2016 on grade level 10.

We read that Mr. President had released 7.5 per cent to 10 per cent, being the backlog of people who retired from 2014 till date. The benefit I receive monthly has not been increased.

PENCOM: Please visit your Pension Fund Administrator (PFA) as the payment has been effected from the commission. Thank You.

OLADIPUPO: Dear Omotola, my name is Oladipupo. I appreciate the time and energy you are expending on pension complaints. This is my third writing without a response from you. I have no issue with my PFA, Stanbic IBTC.

But I often read about life pensions, statements of account and pension investment. My question is: When can we access pension payment?

OKOH: Good day, Omobola. I really want to appreciate your efforts in helping senior citizens to resolve their nagging post-service issues through your pages in The Nation. It is as gratifying as it’s salutary. May God bless the newspaper.

The platform has gone a long way to bring the pension reform to the fore for pensioners. However, I like to plead, though not within the purview of the platform, but related to pensioners’ handicap, the National Housing Fund (NHF), to which workers make contributions. It was expected that at retirement, the retiree gets his contributions refunded. It’s unfortunate that after a  year or two of retirement, neither the Federal Mortgage Bank nor the National Housing Fund is saying or doing anything to make refund of accumulated and earned contributions.

We would appreciate it therefore, if your platform would extend the gesture to this nagging issue. We really appreciate your good works as a national service to humanity. – Okoh from Abuja.

ANNONYMOUS: I worked as a marketing officer in a micro finance bank for four years but the bank folded up. The name of the bank is Ovidi Microfinance Bank, Okene, Kogi State and has been liquidated for three years.

I wanted to collect  the money that I saved, but I was told that if I were not up to 50 years, I could not collect all my benefit that I saved. Kindly explain this for me.

OLATUNJI: I have an account with my PFA before my company was closed during the COVID-19 pandemic. Since then, I have not secured any job.

I am 57 years. I have approached my PFA that I wanted to collect my contribution to start my business no matter. My PFA said I could only be given 25 per cent of my contributions.  I have pleaded with them that 25 per cent of it cannot give me any business in Nigeria. But they are not listening. Please I need your help seriously to survive.

ANNONYMOUS: Good day, my PEN######33. Kindly help check the status of this annuity application if approved or yet to. Thank you.

DUMNAMENE: Dear Omobola, kindly assist me to wipe my tears away by publishing this:

Tell them to implement my monthly pension that was stopped  last year due to double PIN.

I was referred to ARM pension for recapturing, which I did from Fidelity. I don’t know why it is lingering.

Since last year, when this happened, I have not been paid. I need your assistance – Dr. Dumnamene from Rivers State.

ANNONYMOUS: Hello, I retired from the Nigeria Police in 2015. Recently, President Muhammadu Buhari approved a certain amount to pensioners, including a minimum wage and subsequential adjustment benefit to pensioners. Some federal establishment have received the arrears, including 2.5 per cent.

I want to know why PenCom has refused to remit ours to our various PFAs. Any time we demanded the money they would reply that it had been paid to our PFAs. But our PFAs said this was not true .

If I may ask, what is happening and why has PENCOM has not remitted the said monies for police retirees. Most importantly, retirees in other federal establishment have collected their entitlement up to the last percentage. My complaint is that PENCOM has not released ours to our PFAs for payment. Why? Some of us suffered for this nation and the monies should not be for a particular section of people. Mr. President has given directives for payment of the said monies. How long will it take for us to get the money?

THE NATION: The newspaper will intervene. Therefore, OLADIPUPO, OKOH, OLATUNJI, ANNONYMOUS, DUMNAMENE, UKEJE should look out for the newspaper next week for responses from PENCOM.

 

 

A total of 65,923 cases of deaths, medical expenses, disabilities of employees covered under Employees’ Compensation Scheme (ESC) have received N4.01 billion from the Nigeria Social Insurance Trust Fund (NSITF).

A breakdown of the claims  showed that the agency paid medical expens refund (MER) to 7,293 employers; loss of productivity to 2.690 employers; death benefits to 23,535 next-of-kin/beneficiaries of deceased employees; disability benefits to disabled 29,018 employees; retirement benefit 3,314; further medical treatment/treatment abroad 11. Sixty recieved prostheses & rehabilitation.

A further breakdown showed that NSITF paid N2.94 billion as the highest monthly dependent benefits to beneficiaries of deceased employees and N1.07 billion as highest monthly disability Benefits to disabled employees.

The Regional Manager, NSITF, Lagos Region, Abdul-Lateef Musa made this known in a presentation, on the Fund’s Special Day at the Lagos International Trade Fair organised by the Lagos Chamber of Commerce and Industry (LCCI) with the theme: ‘Service delivery’.

He said they were proud of their achievements in the increased public awareness and employers’ interactive sessions.

He stated that the NSITF is the prime social security institution in Africa and their mandate is as enacted in the Act (ECA 2010).

He said: “We are a parastatal under the Federal Ministry of Labour and Employment. Our mandate is the payment of compensation for any death, injury, diseases or disability arising out of or in the course of employment and for other related matters. The vision of NSITF is , therefore, to be the leading social security institution in Africa, setting the agenda for change, social policy, economic empowerment and poverty alleviation in Nigeria.’’

“The ECS, is a mandatory scheme that entails monthly contributions by employers to protect workers from work-related accidents, injuries, disabilities and death in the course of work. The ECS is mandatory for the formal and informal sectors. The contribution is one per cent of the monthly emoluments of workers, payable by the employers  for the benefit of its employees.

“Benefits of the ECS are Fair system of Guaranteed and Adequate Compensation for all employees or their dependents for any death, injury, diseases or disabilities arising out of or in the course of work; Employers are relieved of the heavy burdens of solely taking care of the injured worker(s); Payment of Compensation whether the employer is buoyant or not is guaranteed; Payment to the injured worker is made regularly without recourse to the Employer, no matter the amount of liability; and Harmonious industrial relationship between labour group and the employer is enhanced.

He pointed out that the NSITF has evolved and their paradigm has shifted to service delivery.

“The services we offer include preventive services; curative and rehabilitative services; and compensatory services. All these are the benefits to employees, employers, government and the society. This has been demonstrated over and again by our prompt payment of claims upon the fulfillment of the required documentation process.”

At present, he said, an enlightenment programme by the NSITF was ongoing on employers developing and emplacing the culture of safety and health in their workplace and their role in ensuring that culture is emplaced.

“We are aware that the LCCI has the best interest of employers at heart. Connecting these businesses with the aim of creating value to both the economy and the nation and employers will in the long run improve and benefit employees’ welfare and that is what we, the NSITF, is committed to. This has been the driving force in our service delivery.

“We are, therefore, in this trade fair for the exposition of the ECS and it numerous benefits to employers and employees in the public/private, the formal and informal sectors. We enjoin employers in the organised private sector and MDAs who are yet to enrol into the scheme to key in.

“As we all know, the world is a global village and the social media platforms have also become a part of business, hence we have engaged these social media platforms as well. All these are geared in ensuring the improvement of the delivery of our services and for our stakeholders to maximise and benefits. The management of the fund has left no stone unturned in ensuring that our service delivery is at par with the International Labour Organisation (ILO) and recognised world’s best standards.

“The fund committed to employees’ welfare,” he added.

Earlier, the Managing Director, Dr. Micheal Akabogu, said the trade fair has given them the opportunity to partner business owners in creating awareness for the welfare of their employees.

“As we are all aware, the Trade Fair is a forum for physical interactions between manufacturers, services providers and their potential customers and is one of the most efficient and effective avenues for participants to showcase their brand, create awareness and exhibit new products and services.

I wish to reiterate that the ECA 2010 established by the Federal Government, is a scheme for the protection of the Nigerian workforce and the Act empowers NSITF to implement the ECS.

“At this point we are glad to report that a good number of employers nationwide have keyed into the scheme and we are working tirelessly to ensure that those who are yet to join will do so by using this opportunity to ensure that employers, entrepreneurs and service providers understand the services NSITF offers as they key into the scheme. We are working to enhance our service delivery in line with the world best service standards and as listed in the NSITF charter. We are also working to ensure that every Nigerian employee whether in the formal or Informal sector is assured of our commitment to their welfare.

“To drive a speedy and efficient service delivery we have invested and upgraded our IT platforms, public awareness opportunities, seamless delivery and feed back to spread the message. In view of this, we have presence in 11 regions and 56 branches across the nation to ensure easy accessibility by all employees and employers of labour.

The Pension Transitional Arrangement Directorate (PTAD) has reconstituted the second Anti-Corruption and Transparency Unit (ACTU).

Its Executive Secretary, Dr. Chioma Ejikeme made this known  at the inauguration of ACTU members by the Chairman, Independent Corrupt Practices and Related Offences Commission, ICPC, Prof. Bolaji Owasanoye (SAN).

She there was the need for transparency and accountability in our activities to engender public confidence, especially those of our stakeholders is a sine qua non.

She said: “The ACTU has responsibility and performs duties as enshrined in the Corrupt Practices and Other Related Offences Act 2000 to ensure good governance which will help the Directorate and those who run it to continue to retain the trust of our pensioners.

“In PTAD, we commit to ensuring the integrity of PTAD’s pension administration system so that Pensioners are rest assured that their entitlements will be processed and paid accurately, fully and on time.”

Owasanoye, represented by Deputy Director and Head, System Study Division, ICPC, Demola Bakare, said the event has added drive to efforts of the ICPC and the Directorate in promoting and entrenching values of integrity, accountability and transparency in PTAD.

“The war against corruption by the Federal Government and anti-corruption agencies demands that all public institutions, public officers and managers of public funds, are in unison to diminish and eliminate the scourge of corruption.The ACTU of this Directorate has always been a source of pride to the commission in view of its past activities and achievements and has, no doubt, that the newly reconstituted unit, after this inauguration will carry on this positive legacy.

“The Unit fared well in areas of monitoring and investigations to eliminate pension scam. Going forward, the ACTU is advised to also prioritise other duties like the conducting systems study and review into processes and procedures of the Directorate as well as  sensitisation of staff against the ills of corruption in the workplace which are still part of the preventive mechanism for which the ACTU was set up.

“However, for the ACTU to continue to achieve this giant stride, I implore the Management not to relent in its support to the Unit by continuing to provide a conducive environment for the Unit to function, provision of funds and office accommodation as well as incorporating its members in various Standing Committees as provided for in the extant circular of government Ref No: OHCSF/SPSO/CSTD/314/T2/61 dated 5th October, 2016?.

In her acceptance speech, the ACTU Chairman, Mrs Ada Phil-Ugochukwu on behalf of the new members thanked the ES for her strong support to upholding one of the Directorate’s enduring core ideals – “Zero tolerance for fraud” and the ICPC for the inauguration.

“We stand before you today honored to have been chosen to serve PTAD and the Nigerian Public Service in general, to uphold the tenets of Anti-Corruption and Transparency. PTAD continues to remain a Zero Tolerance for Fraud environment and a role model reform Agency for the Federal Government”, she maintained.

CHIDI: My name is Chidi. My mother, Mrs. Augustina has not been paid any dime as pension for over 15 years.

Although it is a long story which is partly not the fault of PTAD, PTAD has taken over the payment of pensioners, including my mother as well as her group in Nigerian Railway Corporation (NRC), Enugu District to be precise.

I would like to know when the pensioners (including Mrs. Augustina) in NRC, Enugu District that were part of the mass retrenchment in 2005 by the  Obasanjo administration, start receiving their monthly pension like others?

Many of her colleagues are either dead or incapacitated due to hunger, hardship, trauma, and sickness. That Mrs Augustina still alive is only by the grace of God. More so, this is against the backdrop of the legal dynamics between her group and NRC, Enugu District, with pains and financial support won the case.

Please my mother wants to know what is delaying them from receiving their pension till date.

PTAD: If the pensioner has been verified by PTAD, advise her to scan and send her pensioner verification acknowledgement slip to complaints@ptad.gov.ng. Pensioner to also provide her contact phone number to enable us contact her and advise her further regarding her pension.

MOSES: My name is Ogundele. I will like to inform you that  my minimum wage for 24 months is not correct. I was paid only N64,304,44. The monthly increase is N6,192,19. Some of my colleagues who are on the same grade as I were also short paid.

Kindly help us to correct the anomaly.

PTAD: Advise pensioner to scan and send his verification slip and complaint to complaints@ptad.gov.ng

DANLAMI: Thanks, and kudos to your newspaper for your responses to the plight of pensioners. It is very sad that since NITEL verification of January 2018, ex-NITEL staff membes and I are yet to benefit from the pension payments.

Death can come any time. Please help us while we are still alive so that we can enjoy the fruit of our labour past. God bless you abundantly.

PTAD: Pensioner’s complaint sent to the Operations Department for their review and further action. Please advise pensioner to provide his phone number.

ISHOLA: My name is Ishola, a Federal Government pensioner. I received my pension till last December when I was paid N50,000. Later, I received a message that I had been over paid and that they would deduct the amount. This was supposed to have been completed in April, this year. Thereafter, I am supposed to get some refunds, but nothing is paid into my account. Help me look into my matter.

PTAD: Inform pensioner that his over-payment recovery has been completed. He was put back on the payroll in May 2021. He is advised to confirm the payment from his bank

ABRAHAM: My name is Abraham, son and next-of-kin to the late Inspector Samuel Adem, from Benue State.

My father retired on June 29, 2004 after 26 years of meritorious service.

Until his death, his monthly pension was yet take off. This means he was not on the police pension payroll till he died on October 6, 2010. Please where do start processing his pension and other death benefits from. Is it PTAD or PenCom?

PTAD: Advise NOK to scan his late Father’s service documents and his phone number to verification@ptad.gov.ng. he should also state deceased’s date of retirement from service.

ABUCHI: My name is Abuchi. I worked at the Federal Ministry of Housing and Urban Development. I was disengaged on July 13, 2006. Our gratuity was paid on June 19, 2007. I started receiving my pension from August 2008. My complaint is: I have not been paid my outstanding pension arrears from the day of retirement – July 31, 2006 to July 31, 2008 – even after several complaints letters and bank statements had been sent.

Since then, even after our last verification in December 2017, nothing has come out of it.

PTAD: Advise the pensioner to provide his original stamped and signed bank statement from retirement till date

This subject has been reverberating in the recent past. It is the matter of 75 per cent upfront pension lump sum payment agitation for retirees.

It is of grave concern for all – the industry, the public, the government and pensioners.

Some industry members and experts have wondered if what is being requested for is properly understood. Ordinarily, nothing should be wrong with taking what is considered yours legally. The fact that you live long enough to receive the any part of your pension money into your account is exciting. It really feels good. It is like overseeing what is yours and your future. It is well deserved, haven worked and earned it. However, is the easy way out seemingly the best? Who does not like the good feeling of some good money ‘cooling’ in his or her account?

The answer lies in understanding the purpose and intention of pension. Pension is a reward and recognition for common goodwill of workers for aging on the job and a need for a soft landing after active work years. The employer, government or private sector as defined by the law is mandated to make such provision.

This collective social security arrangement is to both attend to and fend off the burden of later life social and health challenges on aged citizens from the governments already over-burdened other responsibilities. Because of the failure, abuse and burdens of the previous Defined benefits system, DBS, a novel contributory pension scheme (CPS) evolved based on the pension Act of 2004 and its reform of 2014.

 

The pension accumulated under the Contributory pension Scheme (CPS)  is a mutual fund contributed and owned by the government and  employees.

This is why the government is  interested in how an employee spends the money during his retirement.

The Pension Reform Act (PRA) 2004, repealed by PRA 2014, pegs the minimum rate of pension contributions at 18 per cent of the employee’s monthly emoluments, where 10 per cent is contributed by the employer and eight per cent is contributed by the employee.

The Managing Director, IEI Anchor Pensions Managers, Mr. Glory Etaduovie said the government is also interested in how the money is spent to avoid the beneficiary becoming a social burden, adding that it is not a personal savings scheme.

He stressed that this is why it is regulated to avoid abuse and ensure that the government’s social responsibility programme is not jeopardised.

He said: “The government is like a father who trains a child to be independent to have a steady life. No parent wants a situation when a child has to fall back to the parents for support financially if and when they have mismanaged their lives. Consequently, any mismanaged pension benefit is a potential liability on the government and the system.

“So, it is beyond the notion or mentality of ‘it is my money’. There are other collective interests on how the money is used securely for the period a pensioner lives. While pension looks like wholly owned by the retiree, what the retiree does with the money, to the extent that the retiree does not become a burden, is important to the government.

“Also, a critical aspect of the desire of Nigerian retirees to withdraw huge part of the individual pension money upfront is based on ignorance of assumed enough financial literacy to better self-manage the funds.There are permutations and agitations being circulated on how people would have done better managing their  funds. This is misleading and a great disservice to the retirees.”

He stated that the investment environment is dynamic,  unpredictable, except the skills acquired overtime in funds management.

Besides, benefits of group and institutional investments are inestimable. Recently, money market, T-bills, indeed, equities surprised a lot of people on how low rates and pricing could be, like one per cent, he said.

Yet, he said pension operators  under the National Pension Commission (PenCom) stabilised their funds, hedging with more stable class of investment for higher averages.

“Again, how easy would it be to be a businessman that one has not been up till retirement? The business environment is very dynamic and highly knowledge and experience driven. Many have dreamt of starting a business at retirement that they knew little about. What is the failure ratio of many start-ups? Research shows that 90 per cent fail over stretched study. Based on the research, 21.5 per cent failure in the first year, 30 per cent in the second year and 50 per cent in the fifth year. The business idea might even be of a crazy one from a relation who knows of your retirement money coming and has planned with it in mind. Then the money evaporates, as well as the ‘crazy’ relation.

“The truth is that pension is not adventure money. People should be winding down then. Largely, what is not done or achieved by then, when one was healthy and more agile should be considered more carefully before being attempted,” he added.